Shein achieved net income exceeding US$400 million and revenue approaching US$10 billion in the first quarter of 2025, according to source.

The company’s profit margin reached roughly 5% during the period as customers bought products ahead of new US tariffs.

Shein does not publicly disclose its financial results, and it is unclear how the company performed in the April-June quarter.

Shein is a fast-fashion retailer founded in China and headquartered in Singapore.

The company has confidentially filed for a Hong Kong IPO and still needs approval from Chinese regulators.

Its initial plan to list in the US shifted amid scrutiny of its supply chain and labor practices.

Shein was valued at US$66 billion in 2023 but faces pressure to reduce its valuation. The Financial Times previously reported Shein’s 2024 net profit fell nearly 40% to US$1 billion, with US$38 billion in sales.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Pre-tariff consumer behavior creates temporary revenue spikes

Shein’s near $10 billion Q1 revenue likely reflects a classic pre-policy change stockpiling effect, where both consumers and retailers rush to make purchases before cost increases take effect.

This pattern has historical precedent in trade policy changes, where businesses and consumers accelerate purchasing decisions to avoid higher future costs.

The timing aligns with the de minimis rule changes that took effect in May, giving Shein a brief window to benefit from unchanged import costs while consumer awareness of impending price increases drove demand 1.

Daily active users for Shein dropped significantly following tariff announcements, suggesting this revenue boost was temporary as consumer behavior shifted once the policy implications became clear 2.

2️⃣ Geographic arbitrage models face structural disruption

The removal of the de minimis exemption challenges Shein’s core business model of shipping small packages directly from manufacturing hubs to US consumers without duties.

Recent Shein developments